Property News Roundup 07th May 2024
We’re delighted to share the weekly news highlights below.
- Phnom Penh SEZ Announces Increase in Assets
The Phnom Penh Special Economic Zone (PPSEZ), a publicly traded company under Royal Group Phnom Penh SEZ Plc (PPSP), saw its total assets grow from $107.9 million in 2022 to $114.3 million in 2023. This increase is mainly due to a $5.9 million rise in investment properties. The company attributes this to transferring property, plant and equipment into their investment property category. Additionally, the PPSEZ’s total equity went up from $55.2 million to $62.1 million, primarily due to retained earnings, which is the accumulated net profit after dividends are paid to shareholders.
April 28th 2024 | Kiripost | Link:t.ly/dVEYB
- Three Chinese companies seek trade and investment opportunities in Cambodia
Three Chinese companies expressed interest in investing and trading in Cambodia. Representatives from Management Venture Asia (Cambodia), Toyo Ventures Holdings Berhad, and China Energy Engineering Corporation met with a Cambodian Deputy Prime Minister. The Chinese delegation is interested in sectors like digital technology, energy, and possibly others. The Cambodian official highlighted Cambodia’s stable economy and peaceful environment as reasons to invest. This follows a trend of growing Chinese interest in Cambodian investment.
April 27th 2024 | Khmer Times | Link:t.ly/L74or
- High speed locomotives arrive in Cambodia
Cambodia recently received its first high-speed locomotives! Eleven KiHa 183 Series DMU high-speed passenger trains arrived at Sihanoukville Port from Hokkaido, Japan in late April. These trains, reaching speeds of 110 kilometers per hour, will be used for the new Phnom Penh-Poipet Northern Railway, Cambodia’s first high-speed rail line. The 382-kilometer project is a $4 billion investment and is expected to take four years to complete. This is a major development for Cambodia’s transportation infrastructure and is expected to boost economic growth.
April 29th 2024 | Khmer Times | Link:t.ly/6NwCD
- China’s continuing influence over Cambodia’s economy
Cambodia’s economy is tightly linked to China. Chinese firms control 90% of Cambodia’s garment industry, a major driver of the nation’s GDP. A recent free trade agreement slashed tariffs, boosting trade and integrating Cambodia further into global manufacturing. However, this dependence raises concerns. Cambodia’s debt to China is significant, and some analysts believe China wields economic influence to shape Cambodia’s foreign policy. Despite this, Cambodia is also seeking partnerships with other countries like Japan to diversify its economic ties.
May 01st 2024 | EastAsiaForum | Link:t.ly/60yJa
- 14 projects worth $213M approved in Sihanoukville
Sihanoukville, Cambodia got a boost with $213 million in new development projects. 14 projects were approved, including 10 that will resume construction on stalled buildings. The initiative is part of a government program launched earlier this year to revitalize the city. Approved projects include luxury hotels, casinos, and resorts, suggesting a focus on tourism. There’s also investment in manufacturing with a cardboard facility and a concrete plant. This development suggests Cambodia is optimistic about Sihanoukville’s future as a tourist destination and commercial hub.
May 02nd 2024 | Khmer Times | Link:t.ly/GHx9a
- Emirates Airlines Launches Cambodia Flight from May 1, Bolstering Tourism Drive
Emirates Airlines launched new flights between Dubai and Phnom Penh on May 1st. This aims to boost tourism in Cambodia by offering travelers easier access to the country’s rich culture and beauty. The announcement coincides with Cambodia Angkor Air launching direct flights between Phnom Penh and New Delhi in June, further improving connectivity. Cambodia’s tourism industry is recovering, and both airlines and the Cambodian government are working together to attract more visitors.
April 30th 2024 | Travel and Tour World | Link:t.ly/0XODm
- 57 hectares of central Phnom Penh to be pedestrianized as massive tourist area
Phnom Penh’s city center is getting a major makeover! A massive 57-hectare zone in Daun Penh district is being transformed into a pedestrian-only tourist area called “Phnom Penh Pedestrian Street.” Construction is underway and expected to finish by next year’s Global New Year. The area will be a haven for visitors, boasting shops, restaurants, hotels, bars, and even pop-up events. It’ll be open from 6 pm to 11 pm, creating a vibrant nightlife scene. This ambitious project aims to attract tourists and revitalize the heart of Phnom Penh.
April 30th 2024 | Khmer Times | Link:t.ly/grJq0
- A New Base Year for GDP Could Augment Cambodia’s Economy Up to 50%
Cambodia’s economic output could see a significant jump due to a potential change in how it calculates GDP (Gross Domestic Product). Shifting to a new base year, a reference point for measuring growth, might inflate GDP by as much as 50%. This increase reflects the country’s economic development since the current base year was established. Proponents argue the adjustment would better portray Cambodia’s economic reality. However, some caution is necessary, as the actual growth might be less dramatic.
May 02nd 2024 | Kiri Post | Link:t.ly/1yPU-
- Toyota group member’s Cambodian auto plant builds on African success
Toyota Tsusho, a member of the Toyota group, recently opened a car assembly plant in Cambodia. This follows a successful strategy they implemented in Africa. The plant aims to meet the growing demand for vehicles in developing Southeast Asia, specifically Cambodia. Cambodian Prime Minister Hun Manet praised the project for its contribution to industrial development and encouraged the use of local parts in production. This is a significant milestone for Toyota Tsusho in Cambodia and could potentially influence the country’s auto industry.
May 03rd 2024 | Nikkei Asia | Link:t.ly/76-Xd
- IMF revises Cambodia’s GDP up 35% with 2014 base
The International Monetary Fund (IMF) recalculated Cambodia’s GDP using 2014 as the base year, instead of 2000. This seemingly minor change makes Cambodia’s economy appear 35% larger. With the new calculation, Cambodia’s GDP for 2023 is $41.9 billion, compared to $31.9 billion previously. This revision has a domino effect. Cambodians’ GDP per capita also jumps 35%, potentially accelerating their path to upper-middle-income status. Investors might be drawn to this seemingly bigger economy, but tax rates could appear lower due to the increased GDP base, potentially prompting tax hikes.
May 03rd 2024 | Khmer Times | Link:t.ly/0tof-